Eastnine Completes EUR 241M Acquisition of The Bridge Office Tower in Warsaw's Wola District

Eastnine AB took possession of The Bridge, a newly built office property in Warsaw's Wola district, at the end of September 2026 for a purchase price of EUR 241 million, the Swedish real estate company announced with its January-September interim report. The price was reached after deductions for vacancies, rent discounts and tenant adjustments, against an underlying property value of EUR 285 million.

Eastnine said the property portfolio grew by 27 percent compared with the previous quarter following the acquisition and increases in property values in Warsaw. CEO Kestutis Sasnauskas described the deal as the most significant event of the quarter, and perhaps of the year, for the company.

The Bridge Acquisition: Deal Details

The Bridge contains 55,000 sq. m. (about 592,015 sq. ft.) of office space let to nine tenants. It is a 40-story tower in Warsaw's central business district and Wola submarket. The EUR 241 million price equates to roughly EUR 4,382 per sq. m., or about EUR 407 per sq. ft., and sits about 15.4 percent below the EUR 285 million underlying value.

The building is in principle fully leased. About 98 percent of the property is let, a figure Eastnine expects to reach 100 percent within the coming months. At the closing date, however, only 57 percent of the property was physically occupied. Eastnine said this temporarily affects several key ratios, including occupancy rate and profit from property management. The Bridge is planned to be fully occupied in the fourth quarter of 2027.

Erste Bank, which Eastnine described as Poland's third-largest bank with around 6 million customers, has chosen The Bridge for its headquarters. Visa is establishing its global technology development hub in Warsaw at the property. Fit-out work has begun to customize Visa's premises ahead of its move-in next year.

Once all tenants have moved in, Eastnine said the property will generate cash flows for at least ten years. On full occupancy, the company expects profit per share from property management to rise to EUR 0.36, the surplus ratio to rise to 93.2 percent and the yield to reach 6.2 percent.

Eastnine Strengthens Position in Wola and Warsaw

According to Sasnauskas, the acquisition doubles Eastnine's presence in Wola, which the company describes as the fastest-growing district in central Warsaw. Eastnine said it now holds a market share of approximately 9 percent in the district's office segment and has become one of the ten largest office owners in the city. Warsaw accounts for approximately 47 percent of Eastnine's total portfolio value following the deal.

Eastnine said it financed the purchase without a share issue. The company said strong cash flows from operations enabled refinancings, and that favorable access to financing allowed it to reduce the average credit margin by 34 basis points compared with the preceding quarter, while also extending fixed-interest and capital tie-up periods. The average remaining lease term increased to 4.1 years.

Quarterly Financial Results

For July through September 2026, Eastnine reported rental income of EUR 15.448 million, compared with EUR 15.531 million a year earlier. Revenue in the comparable portfolio rose 3.2 percent. Net operating income was EUR 13.880 million, versus EUR 14.480 million, while profit from property management increased to EUR 8.520 million from EUR 8.222 million. Profit for the period rose to EUR 13.932 million from EUR 9.645 million.

Unrealized changes in value totaled EUR 7.859 million for the quarter, of which EUR 3.784 million was attributable to properties and EUR 4.075 million to derivatives. Realized changes in property values were EUR -100,000. Net lettings were EUR -154,000, compared with EUR -544,000 a year earlier.

For the first nine months of the year, rental income totaled EUR 46.149 million (EUR 46.293 million), with comparable-portfolio revenue up 1.4 percent. Net operating income was EUR 42.054 million (EUR 43.322 million) and profit from property management was EUR 23.438 million (EUR 23.953 million). Profit for the period was EUR 26.394 million, down from EUR 37.336 million, with unrealized changes in value of EUR 10.818 million compared with EUR 24.255 million a year earlier.

Excluding The Bridge, the occupancy rate in Eastnine's comparable portfolio stood at 97.2 percent, which the company described as a record high. Eastnine said that, given this level, positive net lettings are scarcely attainable at this stage, and that it has some planned move-outs next year, as communicated in earlier quarters.

Warsaw Office Market Backdrop

The deal closed as Warsaw's office market was tightening. CBRE reported no new office completions in the third quarter of 2026. Warsaw's vacancy rate declined to 7.9 percent, down about 0.6 percentage points from the prior quarter, while leasing activity reached approximately 175,000 sq. m. Prime office rents were about EUR 28.50 per sq. m. per month. A separate third-quarter market series put vacancy at 7.52 percent, with immediately available space down 27 percent year over year and average asking rents up 6.1 percent year over year to EUR 17.52 per sq. m.

Sasnauskas said new office construction is in clear decline across all of Eastnine's markets and that rents within the company's segment are stable and continue to rise, supported by sustained demand, diminished supply and rising construction costs.

In-House Property Management Build-Out

Eastnine is building its own organization in Poland with the goal of taking over property management from an external party. The company's two Poznan properties are already managed in-house. Eastnine will assume management of its Warsaw properties in the first quarter of 2027, while external management agreements remain in place until the second quarter of 2027, after which the company expects the change's favorable impact to show in earnings. Eastnine said property expenses in the quarter were weighed mainly by establishing the in-house organization.

After the end of the period, Eastnine was awarded the highest rating under the 2026 GRESB assessment. The company presented the report on Oct. 22, 2026, via webcast. Sasnauskas and CFO Adela Colakovic were named as the contacts for investors and media.

Eastnine is a Swedish real estate company listed on Nasdaq Stockholm, Mid Cap, in the real estate sector. It describes its aim as being a leading provider of offices in the fastest-growing part of Europe.

Outlook

Eastnine's near-term results will depend on the lease-up of The Bridge, which requires tenant fit-outs and relocations to proceed through the fourth quarter of 2027, alongside the transition to in-house management in Warsaw. In his comments, Sasnauskas said that, despite a more uncertain interest rate environment, the company continues to see favorable conditions in its markets.

Sources

• Eastnine interim report January-September 2026 (English): https://www.eastnine.com/en/press/eastnine-interim-report-january-september-2026-2491377
• Eastnine delårsrapport januari-september 2026 (Swedish): https://www.eastnine.com/sv/press/eastnine-delarsrapport-januari-september-2026-2491376